Tatas worried about AirAsia India growth; unlikely to bid for AI

Tata Sons is unlikely to bid for Air India as it believes that it will not add any heft to its airline business.

Sources close to the salt-to-steel conglomerate told BusinessLine that there is still no clarity on the huge debt pile that Air India is burdened with and the high employee-to-aircraft ratio. It, however, would be interested in some of the key slots at various airports, sources said.

Tata Sons owns 51 per cent each in Vistara, a full service carrier and low-cost airline, and AirAsia India.

The group is also said to be considering a rethink on its way forward with AirAsia India. The airline’s slow growth has been a source of concern for the group coupled with court cases that have stalled the launch of international operations.